- A huge new wave of layoffs is approaching the gaming industry, with some ripple effects already affecting NetEase and Sony.
- A reputed analyst claims that Ubisoft is about to be bought by private equity, resulting in firings in its studios.
- The analyst also predicts that Switch 2 will have quite a slow start, and Game Pass subscribers will hit 50 million this year.
The post-COVID era for gaming has been full of chaos and layoffs. However, new grim data and analysis now suggest another substantial tidal wave of layoffs is about to encroach on the gaming industry.
A new report by the reputed industry analyst Joose Van Dreunen suggests that earlier 2025 layoffs were not just a one-time thing. Many studios across the broader gaming ecosystem are about to shed developers working on in-development titles.
Why it matters: The many predictions made by the reputed industry analyst based on collected data suggest that the gaming industry is about to hit a new tsunami of layoffs soon as more in-development games get canceled.
The detailed report named ‘The 2025 State of Play on Games, Tech, and Media’ by data intelligence firm Aldora clarifies that many large-scale studios will dismiss developers working on titles projected to perform poorly upon release.
Yes, there will be more layoffs in 2025 as especially large firms continue to cut below-the line projections in development or stillborn titles.
-Joost van Dreunen, data intelligence firm CEO, Aldora.
Ubisoft faces the highest level of risk because it is about to be bought by private equity, which will result in studio-wide layoffs across all its branches.
Layoffs have reached historic highs,
underscoring the unsustainability of traditional
development and business strategies.
We’ve already seen NetEase, Microsoft, and Sony lay off many developers across their gaming divisions recently, and these dismissals are only expected to grow.
The industry analyst also presumes that Game Pass will hit over 50 million subscribers this year as gamers look for a cheaper way to play games. Talking about costs, he also argues that the base GTA 6 game will not hit the $100 price tag like other analysts suggested.
Do you think the gaming analyst’s words will come true, provided we’ve already seen signs of approaching layoffs through NetEase? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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